Extension of furlough aid and self-employed benefits through September 2021

Automatic summary, not yet reviewed

1. Furlough schemes (ERTE) based on force majeure related to the pandemic are automatically extended through September 30, 2021. Companies' exemptions from Social Security contributions are also extended, with percentages that go down as the health situation improves.
2. Companies affected by health restrictions can request new furlough schemes based on activity being blocked or limited between June 1 and September 30, 2021. If the situation shifts from blocked to limited (or the other way around), no new scheme is needed.
3. Unemployment protections linked to furlough schemes are extended through September 30, 2021, including rules on dividend distribution, tax transparency, and limits on overtime, new hires, and outsourcing.
4. Self-employed workers who received benefits for ending their activity under Royal Decree-Lawroyal decree-law A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses. 2/2021 will get exemptions from their Social Security contributions starting June 2021: 90% in June down to 25% in September, if they stay registered through September 30.
5. Self-employed workers forced to close by order of the health authorities will receive an extraordinary benefit equal to 70% of the minimum contribution base, for up to four months and no later than September 30, 2021. If two or more members of the same household qualify, the amount drops to 40%.
6. The benefit for ending activity that is compatible with self-employed work is extended, for those receiving it on May 31, 2021 or who meet the requirements. It requires a drop in income of more than 50% compared with the same period of 2019 and net income not above €7,980 in the second and third quarters of 2021.
7. New extraordinary benefits are created for self-employed people who are working but cannot access the ordinary benefit, and for seasonal self-employed workers. In both cases the maximum duration is four months and cannot go past September 30, 2021.
8. Companies in hard-hit sectors (those listed in the annex, such as hospitality, travel, or performing arts) will get higher contribution exemptions. In addition, universities can renew associate professor contracts for the 2021-2022 school year without requiring work outside academia.

Who it affects

• Companies with active pandemic-related furlough schemes: Their schemes and contribution exemptions are extended through September 30, 2021.
• Workers affected by furlough schemes: They keep unemployment protection and job safeguard rules through September 30, 2021.
• Self-employed workers: They can access benefits for ending their activity and contribution exemptions if they meet the income requirements.
• Artists, cultural sector support staff, and bullfighting professionals: Their exceptional unemployment benefit is extended through September 30, 2021.
• Associate professors at universities: They can renew their contract for the 2021-2022 school year without proving work outside academia.

Words worth knowing

ERTE (expediente de regulación temporal de empleo)

A Spanish furlough scheme: authorization that lets a company temporarily suspend or reduce its employees' work and pay, while they collect unemployment benefits.

Exoneración de cotizaciones

Exemption from Social Security contributions: the company or self-employed worker stops paying them, fully or partly, for a period of time.

Cese de actividad

A situation where a self-employed worker stops working or sees their income drop sharply; they can apply for a benefit similar to unemployment pay.

Base de cotización

Contribution base: the amount used to calculate Social Security contributions and, in these cases, the benefit to be paid.

Fijo-discontinuo

A permanent seasonal contract for work done only at certain times of year; the company calls the worker in when there is work.

royal decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries